Bank of England kept its policy rate at 3.75% in line with expectations. The MPC
said renewed Middle East conflict could lift energy prices and rekindle
inflationary pressure, and warned sustained energy-supply disruption may weigh
on growth while broadening domestic price pressures. UK inflation has run below
forecasts recently and activity remains relatively resilient. The decision came
after the Fed held rates — with 3 of 12 voting members favoring an immediate
hike — while the ECB also left rates unchanged earlier this month but signaled
a possible September increase.
